Wednesday, 5 December 2012

There are much bigger threats than the “fiscal cliff” [corrected]

In 35 days the US Government goes off the so-called “Fiscal Cliff”—tax cuts expire, spending cuts kick in, the debt ceiling is broken, and all hell is (allegedly) loosed on the world.

Maybe.

Marc Faber says no. There are much bigger problems out there, including the enthusiasm of politicians and investors to continue faking reality.

Peter Schiff also says no. There are two much bigger threats to the US economy than the immediate “fiscal cliff,” he says: debt, and Ben Bernanke.

The biggest risk is not that “we go over this phony fiscal cliff,” Schiff said in a recent interview. “It’s [that] the government cancels the spending cuts, cancels the tax hikes,… [and] instead we end up going over the real fiscal cliff further down the road.”
“In fact,” he added, “the real fiscal cliff comes when our creditors want their money back and we don’t have it.”

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